Moscow, August 4^th, 2023 – PJSC EL5-Energo publishes its financial results with an audit review for the 1H 2023 in accordance with the International Financial Reporting Standards (IFRS).

• According to the results of the 1H 2023, PJSC EL5-Energo demonstrated an increase of key financial indicators, such as revenue, EBITDA, net income, on the background of electricity prices positive dynamics.
• The net debt of PJSC EL5-Energo continued to decrease, which positively affected the financial stability of the company and was positively recognized by the investment community – in the 2Q 2023, the rating agency Expert RA upgraded the company's credit rating to ruAA- (with stable outlook).
  
  

MAIN FINANCIAL HIGHLIGHTS (millions of RUB)

		1H 2023	1H 2022	Change
Revenues		28,944	24,630	+17.5%
EBITDA		6,353	5,259	+20.8%
EBIT		4,516	(9,698)	-
Ordinary EBIT[1]		4,563	3,476	+31.3%
Net income (net debt)		2,560	(8,575)	-
Ordinary net income[1]		2,597	1,964	+32.3%
Net debt at the end of the period		26,914	28,083 [2]	-9.6%

• Revenues showed a growth of more than 17% y-o-y driven by following factors:

- Increase in revenues from capacity sales by 40% due to a continuing growth in revenues from the renewable CSA program after the commissioning of the Kola wind farm, increase in the price of KOM, KOMMod, as well as indexation of regulated tariffs.
- Increase in revenues from the sale of electricity by 10% thanks to the positive dynamics of market electricity (DAM) prices in the first price zone. The indexation of regulated tariffs further contributed to the revenue growth.
- Increase in revenues from heat sales by 10% primarily due to indexation of regulated tariffs.

• EBITDA grew by 21% primarily due to the improvement of gross margin from the capacity sale, electricity and heat. Operating income was supported by lower fuel costs compared to the growth of revenue from the sale of electricity, which increased by only 8%, partly through optimization of the composition of generating equipment in conditions of negative dynamics of electricity production. The factor constraining the EBITDA growth was the increase of fixed costs, primarily of operating and maintenance expenses, as well as personnel costs, mainly due to the expansion of the company's perimeter following the start of operation of the Kola wind farm and in the conditions of continuing inflationary trends in the 1H 2023.
  
  
• Ordinary EBIT increased by more than 31%, primarily due to a 10% decrease in amortization charges for the 1H 2023 compared to the same period of last year. This was mainly due to a decrease in the size of the book value of fixed assets by the results of 2022, which was partially offset by the commissioning of the Kola wind farm.
  
  
• Ordinary net income increased by almost a third, which turned out to be better than the dynamics of EBITDA and ordinary EBIT. Such dynamics is due to the influence of positive exchange rates differences following the weakening of the ruble, which was partially restrained by the growth of net interest expenses, both because of the end of the period of their capitalization into assets under the project loan of the Kola wind farm, and because of the general increase of interest rates on financial markets over the comparable period.
  
  
• Net debt showed a decrease of almost 10% up to RUB 26.9 billion on the background of the end of active investments phase in renewables. At the same time, the remaining strong operating cash flow in the 2Q 2023 fully covers the cash needs both for the supporting investments and investments in new projects under modernization program.
  
  

MAIN OPERATIONAL HIGHLIGHTS

	1H 2023	1H 2022	Change
Net power production (GWh)	9,921	10,186	-2.6%
including:
- gas output	9,521	10,059	-5.3%
- wind output	400	127	+215.8%
Power sales (GWh)	11,669	11,449	+1.9%
Heat sales (thousand Gcal)	2,025	2,157	-6.1%

• Net power production decreased in the 1H 2023 compared to the same period last year, as a result of the restrained dynamics of consumption in the first price zone, as well as a decline in the loading of power plants by the System Operator. At the same time, the reduction in net power production in the thermal generation was partially offset by the continued growth of the renewable generation:

- the gas output dropped by 5.3%, mainly due to optimization of conventional units load of power plants and due to a decrease of loading of Konakovskaya GRES during the heating period in the beginning of 2023;
- the wind output increased by more than 3 times after the Kola wind farm reached its full capacity.

• Power sales showed positive dynamics with an increase in sales volumes under regulated tariffs for power plants and the conclusion of free bilateral contracts for the supply of "green” energy by wind power plants.
  
  
• Heat sales decreased by 6.1%, mainly due to higher temperatures in the regions of the company's presence during the heating period of 2023.

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[1] The indicators are adjusted for the amount of losses from impairment of property, plant and equipment and other non-current assets

[2] As of December 31^st, 2022